What's the chance the IRS will be abolished

[UpRiver]

Since it is "Tax Season" I had the following thoughts.
I, like most Americans, am fed up with the cost and hassle of filing federal tax returns every year. I have been looking into a group that is trying to get the IRS abolished. www.fairtax.org and www.salestax.org and it seems like it would work better for everyone, except IRS workers, Tax preparers, Tax attorneys and anyone else that makes a living off of this current system.
I am all for doing away with filing tax returns it seems like an outdated system that doesn't work very well. There is wide spread cheating and it's very costly and unfair to the lower and middle income workers. It needs to be reformed and I think the best way to tax would be through a National Sales Tax or Consumption Tax. This doesn't seem like some unrealistic radical scheme to avoid paying taxes but it does appear to be easier and more fair.
Any comments?

[SmokinLowriderSS]

It also virtualls eliminates the "underground economy" like the illegals who do not pay FICA/SS taxes on wages since they do not have the tracing paperwork to do it. Anytime they buy anything, they would be contributing. So would rich foreign folks who come and buy expensive american products like airplanes as an example. I am for it, even if it DOES add a few thousand burocrats to the unemployment roles. I think Wal-Mart has openings for greeters. :p

[SmokinLowriderSS]

Oh, and "Welcome" upriver. Interesting topic to, might be a good one. :)

[Old Texan]

The Fairtax book by Sen John Linder and talk show host Neil Boortz is must reading. It's a workable plan that simplifies and makes sense. The current income tax system is cumbersome, abused, and is completely outdated.
The Washington lobbies are well aware of the repercussions to the accounting / legal industry and will fight Fairtax to the end.
Wake up every neighbor and get the general populace on the Fairtax bandwagon. We can only hope.

[mickeyfinn]

The Fair Tax book is a very good read. So many advantages to this that it is hard to list them all. The most difficult part of implementing a National Retail Sales Tax would be setting the rate. It is almost impossible to anticipate all of the different benefits that come from this. The obvious ones are things such as collecting taxes from illegals here (at least the part they don't send home), Tax on drug dealers, prostitutes and others when they spend their money. There are a ton of hidden benefits as well. Every large corporation has a huge investment each year in doing the taxes for it. The news showed a video a couple of years ago of the accountants from Chrysler hauling the companies tax documents out on hand trucks. Why a company should even file a tax return is beyond me. Companies do not pay taxes, they just collect them from the end users in the cost of the items. So all this overhead the company has for tax preparation goes away. Theoretically the cost of all goods and services should see a reduction in price at the register and then tax applied to that. numbers ranging from as low as 11% to as high as 22% have been tossed around. One big problem is that if done the government will do the conservative thing and shoot high. If it produces more tax revenue than anticipated they will just find other things to spend it on rather than reduce the rate next year. The other issue is people who have saved money all their lives for retirement with post tax money would need to have a way to shelter that money from the tax or they would be subject to double taxation. At some point we may just have to recognize that some people are going to be adversely affected and move forward. Would love to see this idea move forward.

[UpRiver]

I'll get the fair tax book, if nothing else it sounds like a very interesting read. Now that I think about it wouldn't it take an act of Congress to change to a fair tax ? If that is true I assume that most congressmen have some background in law or accounting and the lobbyists would eat them alive if they try to take away their livelyhood. Damn lawyers are going to ruing this great country :argue:

[SnoopJonnyJon]

Unfortunately, what is far more likely to happen, as it has in Canada is to end up having both. I pay 14% sales tax on everything... and I will be paying about 40% income tax. DON'T ask for a sales tax.. you'll just end up with both.